Globalization In Hospitality Case Study

1348 Words 6 Pages
Register to read the introduction… Since the time when globalization was introduced in 20th century and with the formation of bodies such as WTO and NAFTA, hospitality industry has opened a huge range of jobs in the developing countries. With the coming of globalization, Hotel brands from developed countries started investing in the developing countries. It has been noted in developing countries like China and India that with more and more companies investing, poverty level in these countries has subsequently decreased (Hamdi 2013). Hospitality industries enjoy the fact of low level wages and their setup cost to establish a business is very low in the developing countries. With the elimination of trade and other barriers from the countries it has been seen that goods and labour can be easily be shifted from one place to another, which also increases the GDP for the economy. According to the census of 2007, Hospitality industry provides jobs to more than 383 million people around the world and in a developing country like India; it is currently employing more than 38 million people (Jauhari 2012). With more and more hospitality companies investing in India, there have been job opening in the various sector such as airlines, Cruise, Travel Industries and etc. With the increase in investment in developing countries, it has also led to …show more content…
But it has more of pros than cons, since it is helping the country to grow its economy and also gives a chance to Hospitality skilled labour to be employed in a bigger organization. With the change in environment in the hospitality industry after globalization, the completion for the local hotels has also increased since other hotels are offering better quality at a much affordable price. The local hotel industry will have to re-think about their strategy for doing business in such a highly competitive market. With such a wide range of options available in the market, it also gives a chance to the consumers to enjoy a wide number of options. They can choose from wide range of products available which suites them the best. Big hotel giants are also trying to standardize their service quality around the world so that the customers get a chance to enjoy the same level of luxury everywhere. With the increase use of technology and innovation coming up, hotels will have to continuously redesign their business strategy with anticipating the future risks so that they don’t lose their market share in the

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